1. The document discusses rural transformation and implications for agricultural and rural development. It outlines key topics like transformation and transitions, social differences, and policy implications.
2. Rural areas experience economic growth and a relative decline in agriculture as countries develop. This leads to urbanization as people move to cities. The main challenge for agriculture is to raise productivity during this transition.
3. There is consensus around the importance of rural public goods like infrastructure, education, and research to support development, as well as addressing market failures in rural areas through potential state interventions or institutional innovations.
7. Asian success: Rising Rural Wages in Asia
Vietnam
5
10
15
20
25
30
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Red River delta North East
North West North Central Coast
South Central Coast Central Highlands
South East Mekong River delta
8. Despite Asian success, much gloom
Theory
Agriculture: limited scope
for productivity gains, few
links, low & falling prices
Manufacturing =
Innovation
Agglomeration
economies in urban
areas
Empirical
Africa’s limited
transformation
Asian examples
unrepeatable??
15. No secrets: consensus on basics (1)
Rural Investment Climate
• Doesn’t have to be perfect! [Rodrik]
16. Consensus on basics (2)
• Bullet slide 22ptVerdana
16
Rural Public Goods
• Roads, power, irrigation, etc.
• Education, Health, Water
• Research & Extension
17. Debate: Failings in rural (factor)
markets: solutions?
State intervention?
e.g. Fert Sub
Institutional
Innovation e.g.
Contracts, Co-ops,
etc.
17
Matters most for B, C smallholders & women
19. Social Protection for
SF on low incomes
Challenge of
graduation:
linking from SP
to Productive
Investments
20. Priorities for development partners?
Encourage Basics: evidence strong
Fund Rural Public Goods
Market Failures: fund trials [challenge funds?] & learning
Pilot Graduation from SP
22. Beware gloom: check [SE] Asia
Henley & van Donge 2012
Sound macro-economy: avoid inflation > 20%
Economic freedom for peasants & small entrepreneurs
Pro-poor, pro-rural public spending: >20% budget
No need for industrial policy!
Patience: T & T takes 30 years +